In December of 2016,XL Computer's Internal Auditors Discovered That Office

question 74

Essay

In December of 2016,XL Computer's internal auditors discovered that office equipment costing $800,000 was charged to expense in 2014.The asset had an expected life of 10 years with no residual value.XL would have recorded a half year of depreciation in 2014.
Required:
Prepare the necessary correcting entry that would be made in 2016 (ignore income taxes),and the entry to record depreciation for 2016.

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Definitions:

Exclusive Representation

A legal status where a single labor union is recognized as the sole representative of all the employees in a bargaining unit for purposes of collective bargaining.

Majority Rule

A decision-making principle where the option that receives more than half of the votes is selected or adopted.

Adversarial

Pertaining to a competitive or oppositional situation where parties are in conflict or competition.

Trade Unions

Organizations formed by workers from related fields that aim to protect their collective interests and improve working conditions, wages, and benefits through collective bargaining.